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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (831)	9/23/2003 3:33:44 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

Beijing to tighten listing and IPO rules By Mure Dickie in Beijing Published: September 23 2003 5:00 \| Last Updated: September 23 2003 5:00 China has announced tougher requirements for companies planning to make initial public offerings which analysts said should make it more difficult for unprofitable or shell businesses to win a coveted listing on the domestic market. The rules, posted by the China Securities Regulatory Commission in state media yesterday, bar companies that have recently undergone big management or structural changes from listing and limit the scale of individual issues to twice the value of the company's net assets. They also ban listings of companies that rely on their largest shareholder for more than 30 per cent of sales or where purchases from the largest shareholder account for more than 30 per cent of expenditure. Chinese stock markets, among Asia's worst performing this year but still widely considered to be overvalued, have slumped in recent months as investor enthusiasm fails to keep pace with a recent string of IPOs. However, the announcement of the new rules did not appear to assuage the fears of an IPO glut, with the benchmark Shanghai composite index closing down 0.71 per cent yesterday at 1,381 points - an eight-month low. The effectiveness of the new rules in improving the quality of new issues is also likely to depend largely on how strictly they are enforced - no easy matter given the political clout of many of the state-owned enterprises awaiting listing. Dong Chen, market analyst at China Securities Research in Beijing, said news.ft.com